Inflation and Deflation

Federal Reserve officials disagreed widely last month on when they might begin lifting interest rates from record lows.

Minutes of the March 17-18 meeting released Wednesday reveal that several policymakers predicted a rate hike in June, while others concerned about low inflation didn't think a rate hike would be warranted until later this year. Still others said the economy wouldn't be strong enough for an increase until 2016.

The Fed's benchmark interest rate has been near zero since December 2008.

In the statement the Fed issued after its meeting, it signaled it was moving closer to a rate increase by dropping language it had been using since December that it...

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Federal Reserve officials disagreed widely last month on when they might begin lifting interest rates from record lows.
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WASHINGTON — Federal Reserve Chairwoman Janet L. Yellen said the central bank was likely to take a more cautious and gradual approach toward raising interest rates than in the past, reflecting a weak economy and other risks of tightening monetary...

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Federal Reserve officials took a step toward raising interest rates for the first time since 2006, but with economic growth slowing in the first quarter and inflation running unusually low, policymakers made clear that they are in no hurry to do so.
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Consumer spending bounced back in January after taking into account sharply lower gas and energy prices, the Commerce Department said Monday.
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A plunge in gas prices last month lowered consumer prices by the most in six years. But excluding the volatile food and energy costs, prices rose.
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Federal Reserve Chairwoman Janet L. Yellen greased the wheels for an eventual interest rate hike, but she made clear that she was keeping her options open on the timing of any such move.
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Federal Reserve Chair Janet L. Yellen on Tuesday gave an upbeat assessment of the American job market. But she noted it was not fully healed and reiterated the central bank's stance that it remained "patient" in raising interest rates.
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Now comes the tough part for Federal Reserve Chairwoman Janet L. Yellen.
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